U.S. patent number 7,398,248 [Application Number 10/067,869] was granted by the patent office on 2008-07-08 for system and method for using cards for sponsored programs.
This patent grant is currently assigned to Catalina Marketing Corporation. Invention is credited to John Bastone, Colleen Donahue, Laurie Feegel, Jennifer Lee-Emmons, Linda Mabrey, Katherine J. Perron, Steve Phillips, Joe Rice.
United States Patent |
7,398,248 |
Phillips , et al. |
July 8, 2008 |
System and method for using cards for sponsored programs
Abstract
A method, system, and computer program product for implementing
a marketing application using a store card as a Reward Card, Rebate
Card, Pre-paid Script Program Card, Incentive Card, and/or Gift
Card, as well as a Frequent Shopper Card. A card provided in
association with an initial credit is also associated with an
identification and account stored in a computer database memory,
and the identification in the card enables the retailer to
subsequently allow the consumer to use the card for additional
computer based marketing, debit, and credit activity.
Inventors: |
Phillips; Steve (Lansdowne,
PA), Rice; Joe (Point Pleasant Beach, NJ), Mabrey;
Linda (Oldsmar, FL), Donahue; Colleen (Sea Girt, NJ),
Feegel; Laurie (St. Petersburg, FL), Lee-Emmons;
Jennifer (Clearwater, FL), Bastone; John (Temple
Terrace, FL), Perron; Katherine J. (Neptune City, NJ) |
Assignee: |
Catalina Marketing Corporation
(St. Petersburg, FL)
|
Family
ID: |
27658922 |
Appl.
No.: |
10/067,869 |
Filed: |
February 8, 2002 |
Prior Publication Data
|
|
|
|
Document
Identifier |
Publication Date |
|
US 20030154163 A1 |
Aug 14, 2003 |
|
Current U.S.
Class: |
705/39;
705/14.34; 705/26.1; 902/25 |
Current CPC
Class: |
G06Q
20/10 (20130101); G06Q 30/0601 (20130101); G06Q
30/0234 (20130101); G06Q 30/02 (20130101) |
Current International
Class: |
G06Q
30/00 (20060101); G07G 1/14 (20060101) |
Field of
Search: |
;705/14,16-18,26-27,35,39-42,44,64-68,75-79 ;902/22,24-29
;379/91.01 ;707/1-6,10,100-104 ;726/1-21 |
References Cited
[Referenced By]
U.S. Patent Documents
Other References
Lucas, "What's in the Cards for Smart Cards?", Jun. 1995, Credit
Card Management v8n3, pp. 64-71, ISSN: 0896-9329. cited by examiner
.
PCT International Search Report PCT/US03/01074, Oct. 19, 2003.
cited by other.
|
Primary Examiner: Cheung; Mary
Attorney, Agent or Firm: Neifeld IP Law, PC
Claims
What is claimed:
1. A computer implemented method comprising the steps of: storing a
CID on a card; activating, in a computer system of a third party, a
consumer account associated with said card; providing, in said
computer system of said third party, said consumer account with an
initial credit; identifying, in a retail store computer system,
said CID in a purchase transaction in a retail store associated
with said retail store computer system; debiting, in said retail
store computer system, said consumer account by the amount of said
purchase transaction; determining, in said retail store computer
system, conditions for future credits associated with said CID;
storing, in said retail store computer system, said conditions in
an account associated with said CID; crediting, in said retail
store computer system, said consumer account, when said conditions
are satisfied; selling said card by said third party to a consumer
at a card sale price; and crediting, in said computer system of
said third party, a retail store account of said retail store by an
amount less than said initial credit when said computer system of
said third party activates said account.
2. The method of claim 1 wherein said card is sold to a consumer as
a gift card defigning a right to specified credit in a specified
store.
3. The method of claim 1 wherein said card is one of a plurality of
store cards batch activated and postal mailed to consumers' postal
addresses.
4. The method of claim 1 further comprising storing product
purchase history for products purchased in association with said
CID.
5. The method of claim 1 wherein said conditions depend upon a
product purchase history of said customer stored in association
with said CID meeting criteria.
6. The method of claim 5 wherein said criteria are transmitted from
a manufacturer to a central computer storing product purchase
history data associated with CIDs from a plurality of retail stores
and retail store companies.
7. The method of claim 1 wherein said card sale price is less than
said initial credit.
8. The method of claim 1 further comprising, after said activating,
transmitting from said computer system of said third party to said
retail store computer system a signal indicating that said consumer
account has been activated.
9. The method of claim 1 further comprising transferring funds
totaling an amount that is less than said card sale price from said
third party to said retail store.
10. A computer system, comprising computer readable medium storing
instructions for performing the following functions: storing a CID
on a card; activating, in a computer system of a third party, a
consumer account associated with said card; providing, in said
computer system of said third party, said consumer account with an
initial credit; identifying, in a retail store computer system,
said CID in a purchase transaction in a retail store associated
with said retail store computer system; debiting, in said retail
store computer system, said consumer account by the amount of said
purchase transaction; determining, in said retail store computer
system, conditions for future credits associated with said CID;
storing, in said retail store computer system, said conditions in
an account associated with said CID; crediting, in said retail
store computer system, said consumer account, costs of items
purchased when said conditions are satisfied; selling said card by
said third party to a consumer at a card sale price; and crediting,
in said computer system of said third party, a retail store account
of said retail store by an amount less than said initial credit
when said computer system of said third party activates said
account.
11. The system of claim 10 wherein said card is a gift card
defining a right to specified credit in a specified store.
12. The system of claim 10 wherein said card is one of a plurality
of store cards batch activated, and means for addressing said cards
to consumers' postal addresses.
13. The system of claim 10 further comprising means for storing
product purchase history for products purchased in association with
said CID.
14. The system of claim 10 wherein said conditions depend upon a
product purchase history of said customer stored in association
with said CID meeting criteria, said system further storing said
criteria.
15. The system of claim 12 further comprising structure for
transmitting said criteria from a manufacturer to a central
computer, said central computer storing product purchase history
data associated with CIDs from a plurality of retail stores and
retail store companies.
16. The system of claim 10 wherein said card sale price is less
than said initial credit.
17. The system of claim 10 further comprising structure for, after
said activating, transmitting, from said computer system of said
third party to said retail store computer system a signal
indicating that said consumer account has been activated.
18. The system of claim 10 further comprising structure for
transferring funds totaling an amount that is less than said card
sale price from said third party to said retail store.
Description
BACKGROUND OF THE INVENTION
1. Field of the Invention
The present invention relates to problems in offering marketing
programs to consumers. More particularly, the invention relates to
retail marketing application systems and methods using an
identification card.
2. Discussion of the Background
Pre-paid gift cards each typically are associated with a dollar
value that can be used in a store identified by the card as credit
towards a purchase in that store.
A frequent shopper card (FSC) typically stores a CID that
represents a unique identification. The CID identification is some
times associated in a computer database management system with a
person or with members of the same postal or residence address.
The CID on a card is typically formed so that the CID can be
machine read from the card, for example, by reading data stored
magnetically in a magnetic strip or a visibly as a bar code.
Machine reading typically occurs at a point-of-sale (POS) terminal.
Examples of data that may be associated in a database management
system with a CID in order to identify a consumer or household are
credit card numbers, debit card numbers, social security card
numbers, driver's license numbers, checking account numbers, street
addresses, names, e-mail addresses, telephone numbers, frequent
customer card numbers, Shopper Card Identifications (SCIDs).
Prior art script programs are programs wherein a third party
organization, such as a school or charity, contracts with a
retailer or grocer to sell paper certificates having a face value
and that can be redeemed for their face value in the contracting
retailer or grocer's participating stores. These certificates are
also called "Funny Money." Funny money has a pre-defined dollar
face value. Typically, a third party purchases the certificates for
less than face value and sells them for their face value in order
to make a profit. For example, a school may contract to pay
retailer-X $8.00 to sell a consumer a $10.00 paper certificate,
thus generating $2.00 for the school with every certificate sold.
The consumer who purchased the paper certificate may then redeem
the $10.00 dollar value of the paper certificate when making a
purchase at the contracting store.
The present inventors recognized a drawback to prior art script
programs. If a consumer makes a $2.00 purchase at the contracting
retailer or grocer using a $10.00 certificate, the retailer or
grocer would then be obliged to provide the consumer with change in
the form of $8.00 in cash. The retailer or grocer potentially loses
$8.00 in sales. This loss of sales is commonly referred to as
"slippage".
Prior art rebate programs are programs where a consumer purchases
an item with a rebate form included in with the item, the consumer
fills out the information required on the rebate form, such as
writing the consumer's name and address and the product's Universal
Product Code (UPC), and then mails the rebate form and a proof of
purchase of the item to the manufacturer of the item. The
manufacturer then issues a check for the amount of the rebate and
mails the check to the consumer. In certain countries product codes
other than UPC codes are used. Use herein of UPC means any product
coding convention.
The present inventors recognized drawback to a retailer in whose
stores the consumer buys the products for which rebates are
available. The rebate program provides no incentive for the
consumer to return to the retailer's store. The present inventors
recognized a drawback to consumers of rebate programs. The consumer
must fill in multiple rebate forms and provide multiple proofs of
purchase when complying with traditional rebate program
requirements in to obtain rebates on multiple products.
A platform is defined as the hardware system and the system
software used by a computer program. Examples of platforms are a
client-server platform. The term server refers to any program that
offers a service that can be reached over a network. A client
refers to an executing program that sends a request to a server and
waits for a response from the server. Servers are usually
implemented as application level programs. Servers implemented as
application programs can execute on any computing system that
supports TCP/IP communication or the like. A server for a
particular service may execute on a timesharing system along with
other programs, or may execute on a personal computer. Multiple
servers may offer the same service and may execute on the same
machine or on multiple machines. Replica server copies on
physically independent machines can be used to increase reliability
or improve performance.
A database is a collection of data items that have certain
associations with one another, and that may be shared and used by
several different subsystems or other remote computer systems via
an associated database management system, such as Microsoft Access
or SQL Server software. The computer systems and code for accessing
and using data stored in the databases define a database management
system. A database may comprise arrays, records, and simple linked
lists. The word "programmed" herein means that code is either
software stored in recordable media or hard wired into
semiconductor electronic components.
The design and implementation of various methods of database
networking and Internet communications are well known, and are
described for example in Comer, "Internetworking with TCP/IP Volume
I: Principles, Protocols, and Architecture," 2.sup.nd ed.,
Prentice-Hall, Inc. 1991; Comer and Stevens, "Internetworking with
TCP/IP Volume II: Design, Implementation and Internals,
"Prentice-Hall, Inc. 1991; Comer and Stevens, Internetworking with
TCP/IP Client-Server Programming and Applications," Prentice-Hall,
Inc. 1993; each of which is incorporated herein by reference.
SUMMARY OF THE INVENTION
One object of the invention is to provide a novel computer
implemented system and method for preventing sales slippage.
Another object of the invention is to provide a novel computer
implemented system and method for requiring the consumer to obtain
rebates in the same store where the consumer obtained purchased
goods giving rise to the rebates.
Another object of the invention is to provide a novel computer
implemented system and method enabling script programs wherein the
full value associated with the redemption is captured in the
contracting retailer or grocer's participating stores.
Another object of the invention is to provide a novel computer
implemented system and method for enabling rebate and script
programs that do not require paper documents.
Another object of the invention is to provide a novel computer
implemented system and method for enabling using a card and/or a
CID for multiple purposes including as a gift card for providing a
predefined dollar value, in a script program in place of a paper
certificate, as a rebate card in place of a manufacturer's check,
and as a frequent shopper card providing discounts purchase
incentives to consumers.
A marketing program sponsor, or sponsor as used herein, means an
entity that agrees to pay for crediting incentives of the marketing
program when consumers satisfy conditions of the program necessary
to obtaining the corresponding credit. A sponsor may be a
manufacturer, an organization of manufacturers, a store, or an
organization of stores, and any combination thereof.
These and other objects are achieved by providing novel computer
network systems and methods for enabling sponsors including
retailers, grocers, store chains, store associations, and
manufacturers to provide a card to a consumer, to associate a CID
with the card, to associate at least one, preferably at least two
or three, and up to five accounts with the CID, and then using the
card by recognizing the CID on the card to account for changes in
the balances of the associated accounts for gifts, script values,
rebates, discounts, and purchase incentives based upon consumer
purchase transaction activity. In addition, the CID and card may
also be associated and used for conventional banking credit and
debit accounts.
A consumer's biometric reading may be used in place of an arbitrary
CID. Biometric data includes retinal pattern, fingerprint, voice
recognition, and facial recognition. Using biometric data avoids
the need for a card in order to implement the present invention. If
biometric data is used, the consumer's unique biometric data must
be recorded to define a identification that can be used to identify
the consumer in subsequent transactions. The biometric data can
either be stored on a card or the place of transaction must be
equipped with equipment to read the consumer's biometric data from
the consumer per se.
The present invention provides novel computer network systems and
methods for associating initial dollar amounts with one or more
accounts associated with a CID associated with a card, and then
subsequently changing the value in the accounts associated with the
CID.
The store card of the present invention may serve as an FSC to
track and record a consumer's purchase history and preferences, as
described by commonly owned application Ser. No. 09/873,185 filed
Jun. 5, 2001, the contents of which are incorporated herein by
reference.
Card Structure
Card are typically a few centimeters on a side, about a millimeter
thick, and include a at least a shell of hard plastic.
If the card is a smart card, it also includes computer memory and
some processing ability. If the card is a smart card, or if the
card includes read write memory, the initial dollar value and
subsequent changes to accounts associated with the CID and the
initial dollar amount may be stored in memory in the card.
If the card is not a smart card, the dollar values and accounts
associated with the CID of the card may be stored in a memory or
database in association with the CID in a digital computer system.
The digital computer system may be a POS computer system associated
with one or more retail stores or with a computer system capable of
communicating with one or more POS computer systems associated with
one or more retail stores.
In the case of smart cards, the accounts and their balances and
associated conditions for debiting and crediting may be stored in
either or both of the card's memory and in the POS computer system
or a computer system in communication with the POS computer
system.
Computer System Structure
The computer network system of the invention includes at least one
database storing CIDs, and input/output means to receive the CID
and communicate information to the consumer holding the card having
that CID. The computer network system comprises at least a store
computer system (including a POS computer system), and preferably
also comprises a marketing computer system in communication with
the store computer system. A database in the system stores
conditions associated with a CID indicating when account balances
associated with the CID should be debited or credited and the
amount of the change. A computer in the computer network system
determines when conditions associated with an account associated
with a CID are satisfied, the amount of the change in the account
balance, updates the database with the new account balance, and in
certain cases provides instructions to a POS computer system or a
POS terminal to modify a transaction in process with which the CID
is associated.
Account Activation
Cards may need to be activated by initializing accounts associated
with a CID associated with the card, and may additionally include
the steps of generating and storing a CID in the card. Prior to
activation, there may be no CID associated with the card, there may
be no account associated with the CID of the card, or there may be
data associated with the accounts for the CID of the card
indicating that the card is not active. Inactive cards means cards
that do not function to implement the sponsored programs disclosed
herein for any one of these reasons. Card activation involves one
or more of the following steps: associating a CID with the card,
generating or initializing accounts associated with a CID of the
card, and changing status data associated with a CID indicating
that accounts associated with the CID are active in the sense that
the accounts may participate in sponsored programs.
Card activation may be performed individually using an individual
card activation mode associate with one CID. Individual card
activation is more suitable for in-store distribution of cards.
Cards are individually activated by transmitting at least data
indicating a CID associated with the card to a central database.
Preferably, activation also requires transmission of one or more
predetermined activation codes. The predetermined activation codes
may be store employee codes, a store department codes, store codes,
chain codes, association codes, or manufacturer codes, wherein each
code uniquely identifies the corresponding entity.
Card activation may be performed for a group of cards by using a
batch card activation mode identifying a plurality of CIDs. This
type of activation, a file containing CIDs is read by a computer
system and the computer system indicates in a database containing
accounts for those CIDs that the accounts are active. Batch card
activation is more suitable for mass distribution of cards, such as
by a direct mailing of a card, one to each one of a large numbers
of consumers. Since multiple accounts may be associated with a
single card, activation of different accounts associated with the
card may occur at different times.
Account Modification
Modification to accounts associated with a CID may be contingent
upon a number of different types of conditions. These conditions
may be imposed by the sponsor of the marketing program, conditions
imposed by a retailer or manufacturer in addition to those imposed
by the sponsor, and conditions imposed by a marketing company in
addition to those imposed by the sponsor. These conditions include:
purchase of particular items or services; purchase of items or
services in certain categories; purchase in certain time periods;
purchase in certain stores, associations of stores, locations, and
chains of stores; currency (e.g., dollar amount) of associated
purchase transaction or cumulative dollar amount of associated
purchase transactions in a specified time period or for all
recorded associated transactions; receipt by rebate fulfillment
service of rebate forms with complete information, of receipt of
proof of purchase, and receipt of secondary identification, such as
driver's license or credit card number. Amounts of account changes
or inventive offers may depend upon prior product purchase history
associated with the CID, such as frequent or infrequent purchases
of a product, of products in a category, consistent purchase for
one brand over another, or inconsistent purchase of one brand over
another brand.
Sponsored programs
In one computer implemented sponsored program of the invention, an
account having a non-zero initial balance is established,
activated, and associated with a CID. The computer system storing
the account stores specifications of stores at which the value of
the account associated with the CID is applicable to partially
offset costs of a purchase transaction associated with the CID. A
consumer receives a card having the CID. The consumer purchases in
a specified store. The CID is read by the POS terminal in
association with the purchase transaction. The POS system offsets
the cost for the purchases by the amount of the initial non-zero
balance in the account. Alternatively, the POS system provides cash
back to the consumer to the extent the initial account balance
exceeds the charges for the purchase transaction. This marketing
program is referred to herein as an Initial Distribution Reward
program. If the consumer already has a suitable card, the account's
CID may be associated with the consumer's pre-existing card by
entering the CID associated with the aforementioned non-zero
initial balance, and also entering the CID of the consumer's card.
One or more security codes, such as a store clerk's ID code or the
like could be entered as part of the same transaction.
In another computer implemented sponsored program of the invention,
a third party sells cards that each have a predetermined face
value, such as $10.00, $25.00, $50.00 or $100.00, to consumers for
face value. All cards in the possession of the third party may be
activated prior to sale, and any cards not sold by the third party
may be deactivated if not sold. Alternatively, only those cards
that are sold are activated. Either upon activation of each card,
or after a time set for deactivation, a computer system accounting
for the third party's sale of cards credits an account associated
with the third party. The total credit is based upon the number of
cards sold by the third party. The consumer typically pays the face
value for the card. The value associated with the card may be used
to offset the cost of purchase transactions in specified stores.
This type of method is referred to herein as a Script program.
Preferably, the terms of the Script program do not provide for
rebating money to the consumer if the consumer's purchase
transaction is less than the currency amount associated with the
Script program account of the consumer's card. If the consumer has
a suitable card, the face value may be associated with the
consumer's pre-existing card by entering the CID of a predefined
account having a value associated with it, and also entering the
CID of the consumer's card, and typically the consumer would at
that time pay the third party the face value. One or more security
codes, such as a store clerk's ID code or the like could be entered
as part of the same transaction.
In another computer implemented sponsored program of the invention,
a rebate account associated with the CID of the card associated
with a purchase transaction is credited by the amount of rebate
credit to which purchases in the transaction are entitled. The
consumer may then redeem the balance in the rebate account
associated with their card by subsequently presenting the card in a
store participating in the rebate program. The store's computer
system determines the balance amount in the rebate account. The
store provides to the consumer the amount associated with the CID.
This type of method is referred to herein as the RebateMax program.
Typically, it is the store in which the items having the rebate
offers are purchased that will want to participate in the program
by paying the consumer the rebate credit amount.
The consumer's rebate account associated with the consumer's card
is typically credited by a manufacturer when the manufacturer
receives from the consumer proofs of purchase and properly
completed rebate forms. The manufacturer's computer system sends
appropriate information to the computer system managing the
database storing the consumer's rebate account. When the consumer
presents his card at a transaction terminal, such as a POS terminal
or Kiosk, in a participating store, the store's POS system queries
the consumer's rebate account and credits the consumer's concurrent
transaction (typically at a POS terminal) or provides the consumer
a store chit or cash (typically at a Kiosk in the store). The POS
system communicates the change in the consumer's rebate account to
the computer system managing the consumer's rebate account, and the
consumer's rebate account is appropriately updated to reflect
change in balance.
Alternatively, the store's proof of purchase document is generated
during a customer's transaction at the POS to contain in computer
readable form one or more of the following: identifications of
products contained in the purchase (e.g. UPC codes), quantities of
each product purchased, consumer's CID), a central rebate
clearinghouse address, and individual manufacturer rebate
clearinghouse addresses. The purchase document may also contain
instructions and information in human readable form. The consumer
mails the proof of purchase document to a clearinghouse, the
clearinghouse automatically reads information on the proof of
purchase document, and credits the consumer's rebate account if
appropriate.
In one embodiment, either the store's POS system or a computer in
communication with the store's POS system stores data indicating
which products have associated rebates, determines which products
in the consumer's order are entitled to rebates and provides that
information in human readable form to the consumer at the POS
during the transaction.
In an alternative to this embodiment, the POS system identifies the
product items in a consumer's orders that are entitled to rebates,
the sponsors for the rebates for the product items in the
consumer's order, credits the consumer's rebate account, and debits
accounts of the various rebate sponsors. The rebate sponsors pay
the retailer the amount their accounts are debited. The retailer
provides the rebate amount to the consumer, preferably on a
subsequent transaction in the retailer's store, and debits the
consumer's rebate account. The retailer may impose additional
conditions on providing the rebate to the consumer, such as a
minimum time interval between when the consumer purchases items
providing a rebate balance in the consumer's account and when the
consumer's account balance is credited, the requirement to
purchase, purchase more than a specified dollar amount, or more
than the rebate dollar amount. The retailer may also debit the
accounts of the sponsors an additional charge for this service. A
central computer associated with a sale organization may manage the
databases and charge either or both the owner of the store or
stores and the sponsor or sponsors a service fee for managing the
rebate programs.
In another computer implemented sponsored program of the invention,
the CID) of the card has associated with it a dollar value, the
consumer receives the card and presents it in a participating
store, typically to a clerk operating at a POS terminal. The store
then provides the consumer currency in the amount of the dollar
value associated with the card. This method is referred to herein
as a Forced Validation Gift program. The store's POS system
transmits the information on the cash transaction to the computer
system managing the database storing the CID for the card, and that
computer updates the database record for that account for the CID.
In this method, preferably the customer is enabled to use the card
as an FSC card in the store after the initial Gift. To that end,
the store clerk or a service person in the store may receive and
enter into a computer information about the consumer holding the
card having the CID, including demographics, product preferences,
and name and contact (email, telephone, postal address)
information. A computer system may store that information in
association with the CID of the card for use in marketing studies
and programs, and to target market to that consumer.
In FSC programs, stores or manufacturers determine purchase
incentives to provide to consumers using FSCs to stimulate purchase
or loyalty to a store. In these programs, the sponsor provides
discounts on current purchases some of which may be based upon
fulfilling specified conditions, and identifies conditions for
discounts on future purchases to the consumers. Consumers meeting
conditions receive discounts. Discounts may be based upon
purchasing specified products in specified stores and providing the
CID or cards in association with the purchase.
Each of the marketing programs mentioned above includes a CID, and
that CID can be used for tracking and maintaining records of
consumer purchases at stores participating in a card program, can
be used as an FSC in addition to accounting for initial account
balances. When used as an FSC, the CID associated with the card is
used by a POS computer system to track and maintain accounting
records of the consumer's product purchases. If a consumer already
has a CID and card when entitled to a Forced Validation Gift,
Script, or Initial Distribution Reward, the CID for that
entitlement can be associated in a computer database with the CID
of the consumer's preexisting card thereby enabling the consumer to
use the preexisting card.
Further, one or more computer systems may simultaneously store one
or more distinct accounts associated with the same CID, and the
card having that CID may simultaneously be used to implement each
one of the Initial Distribution Reward, Script, RebateMax, Forced
Validation Gift and FSC programs. For example, a retail or grocery
store may use the card to implement its own Initial Distribution
Reward and Forced Validation Gift programs, and then follow on FSC
programs, a retailer in conjunction with a third party may use the
same card or at least the same CID to implement a Script program,
and a manufacturer in conjunction with many retailers may use the
same card or at least same CID to implement a RebateMax program.
Further, retailers can use the same card to provide conventional
debit and credit card services. Finally, if biometrics are used
instead of cards, the same unique biometric data may associated
with the multiple accounts for the same person for each of these
programs instead of a card's CID. Finally, biometric data for
people in the same household may be associated with one another so
that all transactions for that group of people affect the same
account or set of accounts.
One major advantage of the systems and methods of the invention is
that they provide a sponsor means to enable the transfer of a
dollar value to an account associated with a consumer. The systems
and methods of the invention enable sponsor control of where, when,
and how a dollar value associated with a card may provided to a
consumer.
Another major advantage of the systems and methods of the invention
is that they provide means to associate dollar values and
conditions with cards. A card utilized by the invention may be
registered by a consumer or consumer household for use as an FSC
consumer purchase history tracking and accounting vehicle. The
system and method of the invention enables a program sponsor and
store participants to dynamically maintain consumer purchase
history data, consumer profile data, and/or consumer demographic
data.
BRIEF DESCRIPTION OF THE DRAWINGS
A more complete appreciation of the systems, methods, and
advantages of the invention is provided by the following detailed
descriptions when considered in connection with the accompanying
drawings, wherein:
FIGS. 1A and 1B are schematics of a preferred embodiment of a novel
computer system;
FIG. 2 is an illustration of a data structure for storing purchase
history and/or profile data of a particular consumer;
FIG. 3 is an illustration of a data record storing purchase
information associated with a single transaction;
FIG. 4 is an illustration of parts of a data record of a qualifying
consumer profile;
FIG. 5 is a flowchart showing some of the pertinent pre-program
processing steps that are performed according to the present
invention;
FIG. 6 is a flowchart showing some of the pertinent post-program
processing steps that are performed according to the present
invention;
FIG. 7 is a flow chart illustrating some of the pertinent functions
performed during individual and batch mode store card activation,
subsequent consumer store card registration, and consumer record
maintenance;
FIG. 8 is a flow chart illustrating POS terminal functions
involving CIDs;
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS OF THE
INVENTION
In the references to the drawings below, like reference numerals
refer to the same or corresponding elements.
System Components
Arrow heads in FIGS. 1A and 1B indicate the directions of data flow
between devices connected by arrow lines.
FIG. 1A shows network computer system 1 includes at least one store
computer system 100, sponsor computer 40, central computer 30, card
generation unit 36, program criterial database 42, global purchase
history database 32, and consumer address list database 34.
Databases 32, 34, 42 are preferably associated with the central
computer system 30. All computers of the system are preferably
networked, preferably via the Internet 2.
The store computer system 100 preferably includes: an in-store or
POS control computer 10; purchase control computer 20; plurality of
point-of-sale (POS) terminals 12.1, 12.2, . . . , 12.N; plurality
of POS printers 14.1, 14.2, . . . , 14.N; plurality of POS scanners
16.1, 16.2, . . . , 16.N; item record database 18; accounts
database 22; dollar log file database 24; incentive/dollar matrix
file database 26; local consumer purchase file database 28, and
purchase control computer 20.
Computer 10 functions to account for inventory and purchase
transactions.
Purchase control computer 20 is preferably includes a separate
processor from computer 10 and is connected to the in-store LAN or
other local communication network. The functions performed by the
purchase control computer 20 may alternatively be incorporated with
the functions of the in-store control computer 10.
Purchase control computer 20 includes means to access and analyze
transaction data and control signals transmitted from any of the
POS terminals 12 to the in-store control computer 10. Computer 20
functions to analyze sales data, generate and account for debits
and credits to rewards, rebates, gifts, and incentives or dollar
values and associated rules associated with the store 100's
consumers accounts.
Each of the aforementioned computers may include a computer housing
which contains a CPU, memory (e.g. DRAM, ROM, EPROM, EEPROM, SRAM,
SDRAM, and Flash RAM), special purpose logic devices (e.g. ASICs),
configurable logic devices (e.g., GAL and reprogrammable FPGA),
plural input devices, (e.g., a keyboard and a mouse), display cards
for controlling a monitor, disk drives and controllers, removable
media devices (e.g., compact disc, tape, and removable
magneto-optical media, electrically connected using a device bus
(e.g., a SCSI bus, and Enhanced IDE bus, or an Ultra DMA bus), and
network interface hardware.
Each of the aforementioned computers may be a single computer or a
plurality of associated computers. Software for controlling the
hardware of an in-store computer 10, a purchase control computer
20, and a host computer 30 for enabling the computers to interact
with a human user may be stored on any one or on a combination of
computer readable media. Such software may include, but is not
limited to, device drivers, operating systems, network protocals,
and user applications. The direct line network connection or WAN
connection through which the computers may include public
telephone, cable system, and Internet connections.
The global purchase history database 32 may store and maintain
sponsored program criteria for a plurality of sponsored
programs.
The global purchase history database 32 may also store consumer
records from a plurality of stores. Consumer records include a CID,
and may include consumer profile data, such as consumer address
data, income bracket, age, residence location or area such as zip
code, sex, height, weight, and indicated preferences. Consumer
records may include consumer purchase history data, such as data
indicating the dollar amounts of each consumer purchase,
identification of any items purchased, the dates on which items
were each purchased, the frequency of purchases, and various
derivatives of such data. Derivatives of consumer purchase history
data may include frequency of purchase of specific items, recency
of a specific purchase, and relative frequencies of item purchases,
such as the types and brands of items purchased compared to one
another.
The global consumer purchase history database 32 may additionally
store post promotional sponsored dollar value program offer sales
analysis data. This is data derived from sales and time of sales
indicating the impact of the sponsored program on sales of
sponsored products.
The global consumer purchase history database 32 may additionally
store retail or grocery store profile data for retail and grocery
stores, such as consumer demographics data associated with the
locations of stores or markets associated with stores.
The global consumer history database 32 may additionally store item
UPC codes individually, grouped by category, and/or grouped
according to a program sponsor's general sales objectives.
Global program criterial database 42 stores sponsored program terms
and conditions and any additional terms and conditions imposed by
non sponsor product manufactures and retailers involved in a
sponsored program. However, global program criteria database 42,
dollar log file database 24, and incentive database 26 may each
store data defining some or all of the terms and conditions of a
sponsored program.
Terms and conditions of a sponsored dollar value offer program
include qualification criteria data. Qualification criteria data
define criteria a record associated with a CID must satisfy in
order for the consumer associated with that CID to be offered an
incentive or be offered a card. Qualification criteria may include
(1) consumer profile criteria, (2) timing criteria, (3) purchase
history criteria, and (4) purchase item criteria. Consumer profile
criteria includes demographics and spending habits criteria,
including purchase history criteria.
Timing criteria defines date ranges for purchases and dollar values
of purchases.
Purchase history criteria number and frequency of purchases by a
consumer, including by product category and product item.
Purchase item criteria define product items in the customer's
current purchase.
Each local consumer purchase history database 28 may store records
containing a CID, consumer purchase history data, and consumer
demographic data.
Accounts database 22 stores account data relating to CIDs of store
cards, conditions placed upon those accounts, and updates that data
when store 100's consumers accounts should be debited or credited.
However, an accounts database associated with central computer 30
could perform the same function for store 100, and for all other
stores participating in sponsored programs.
Log database 24 stores the number and amount of redemptions,
awards, and incentives in associated with a CID of a card.
Incentive database 26 defines terms and conditions of an incentive
or presently in effect in the store 100.
Item record database 18 includes a record for each item or service
offered for sale by the store, e.g., the store inventory. Each item
or service record includes the item price and a UPC.
The store cards embodied by the present invention may include
indica such as a bar coded CID; typographic personalized
information such as name, CID, or member level, a photograph, an
electronic image file containing photographic data. The cards are
typically about 5 by 10 centimeters by about 1 millimeter in
dimensions, and preferably include a hard plastic frame.
FIG. 2 shows a representation of an exemplary data structure of a
consumer purchase history record 2.00 for storing consumer purchase
history data for a particular CID corresponding to a particular
card or consumer. The representation indicates that all data
contained in a consumer purchase history record 2.00 is associated
with the CID 987-654-321 in box 2.02. Element 2.03 identifies field
headings. Data in each row of table 2.04 below the CID is
associated with one another indicating that the data in each row
relates to the sale of one or more units of one product. For
example, the data in the first row indicates a purchase of a 6-Pack
of 12 ounce cans of Brand Z soda, which has Universal Product Code
123456789, by Store X for $2.99 on Dec. 4, 2000. CIDs for the same
consumer in the global consumer purchase history database 32 and
local consumer purchase history database 28 may be different from
one another but linked to one another. The table 2.00 may include
one or more linked lists, such as an array of purchase records.
FIG. 3 shows part of an exemplary purchase record 3.00 which may be
implemented as part of a consumer purchase history record database
28. All elements of a data record are associated with one another.
The purchase record 3.00 includes a data field 3.02 for indicating
an item's shelf keeping unit (SKU). Each SKU identifies a distinct
item, such as a "one 2 liter bottle of Brand Z soda." The purchase
record 3.00 also includes a data field 3.04 for indicating the
universal product code (UPC). Each UPC is generally implemented as
a bar code on an item. Preferably, the purchase record 3.00
includes a data field 3.06 for storing the purchase location, a
data field 3.08 for storing the price per SKU, a data field 3.10
for storing any redeemed dollar value used for the purchase, and a
data field 3.12 for storing purchase date.
FIG. 4 shows part of an exemplary consumer profile record 4.00
relating to consumer purchase history behavior. The consumer
profile record 4.00 may be a data structure that includes a data
field 4.02 for identifying the CID. The consumer profile record
4.00 may include additional data fields for storing consumer
purchase history classification data with regard to one or more
purchase behavior criteria. The exemplary consumer profile record
4.00 includes three data fields 4.04, 4.06, and 4.08, for three
consumer purchase behavior classifications, such as brand loyalty
(Brand Z loyalty), snaking criteria (heavy Snacker), and health
criteria (Healthy Household), respectively. The purchase behavior
classification may be based on meeting selected purchase criteria
determined from consumer purchase history data. For examnple,
"Brand Z loyalty"--means the consumer has purchased Brand Z at
least three times during the last twelve week period; "Heavy
Snacker"--means the consumer has purchased at least 30 units of a
food item categorized as a snack food type item within the last six
month period; and "Healthy Household"--means the consumer has
purchased at least 30 units of an item categorized as a nutritional
supplement type food item within the last six months.
System Functionality
In-store control computer 10 reads product information from item
record database 18 and records in local purchase history database
28 purchase data for consumers that present their store cards or
CIDs in any form at checkout. Purchase control computer 20 may
periodically communicate the data captured by local consumer
purchase history database 28 to central computer 30. Central
computer 30 may automatically or periodically copy this data into
the global consumer history database 32.
Referring to FIG. 1B, the in-store control computer 10 communicates
with purchase control computer 20, POS terminals 12, printer units
14.1, 14.2, . . . , 14.N, and item record database 18 file database
18 to provide price and totals to POS terminals 12.
Printers 16, or display units or data links at POS terminals 12 may
be used to provide a consumer with indication of current dollar
values of accounts associated with a CID of a card, and any newly
generated or downloaded reward, rebate, incentive, or gift dollar
value, etc. The POS terminals 12 typically connects to the in-store
control computer 10 via a local area network (LAN) or other
suitable communication link. The in-store control computer 10 may
access various databases in addition to item record database
18.
A consumer redeemable dollar value downloaded or associated with a
store card may be sponsored by a retailer, grocer, manufacturer,
store chain, mall, employer, school, charity and/or a combination
of multiple sponsors making-up a sponsoring party. The dollar value
of a store card downloaded or associated with a consumer redeemable
dollar value may be predefined by a sponsoring party. The decision
to provide the store card to a consumer may be based upon consumer
purchase history data, consumer profile data, and incentive
specifications. Qualification criteria provides a sponsoring party
means to direct and/or limit consumer redemption of store card
downloaded or associated dollar values based upon only those items,
or categories of items for which the sponsor intended to provide a
purchase incentive.
A basic function of a store card according to the present invention
is to provide a CID. CID data may be input at a POS terminal into
purchase data control computer 20 or in-store computer 10 via a
local in-store communication loop, a LAN, or the like. CID records
may be accessed and dynamically updated by purchase control
computer 20 and/or in-store control computer 10 at the time of
purchase.
Purchase control computer 20 and/or in-store control computer 10
perform various functions. These functions may include: tracking
and recording consumer purchase history data, consumer dollar value
redemption data, and/or purchase data; and recognizing and
validating that current consumer purchase data, consumer purchase
history data, consumer profile data, and/or consumer demographics
data meets or qualifies for consumer purchase dollar value
redemption.
Qualification criteria may be applied to a CID and transaction data
during a purchase transaction at a POS terminal, during a purchase
transaction over the Internet, or simply upon presentation of a CID
at a POS terminal, at a Kiosk, or over the Internet. The program
sponsor may specify qualification criteria including consumer
profile and purchase history criteria, purchase by product, retail
store, location and retail store chain or association.
Embodiments of the present invention function using a store card
including a memory storage mechanism which stores CID associated
account database file records, as noted above, within a card's
memory storage mechanism. Purchase control computer 20 or in-store
control computer 10 may retrieve at-least some of the above-noted
CID associated account database record fields directly from the
card without the need to access another database at the time of
purchase. This data may be used for recognition and validation that
items being purchased qualify for redemption of a currently
available dollar value at a POS terminal at the time of purchase.
At the time of purchase/dollar value redemption, the purchase
control computer 20 and/or in-store control computer 10 may
dynamically update any appropriate CID associated account record
fields. These include those records fields stored within the store
card's memory, and any other appropriate database record files.
Central computer 30 may periodically and/or upon request transmit
to computers 10, 20, qualification criteria data. Computers 10, 20
may perform validation and maintenance of CID accounts when they
have access to the qualification criteria. Dollar value redemption
approval may occur at a time of purchase, and redemption amounts
may be associated by the central computer 30 with a particular
account and a particular sponsored program.
Sponsor computer 40 may be programmed to transmit marketing program
criteria to central computer 30.
Central computer 30 may process information stored in the global
consumer purchase history database 32, use card unit 36 to generate
new cards, and control card activation. Newly generated batches of
cards may be redistributed to previously registered consumers along
with printed human readable indications of account balances,
incentives, conditions, and expiration dates.
Each purchase control computer 20 and in-store control computer 10
may transmit data to the central computer 30. This data preferably
includes CID records including product purchase data, and also
redemption data and credits and debits associated with marketing
programs.
Embodiments of Methods of Using the System of the Invention
The central computer 30 or purchase control computer 20 analyzes
consumer profile and consumer product purchase history data to
determine which CIDs meet qualification criteria, and therefore
which consumers qualify to receive cards, rewards, rebates,
incentives or gifts. In addition, gift cards can be purchased
thereby mooting this qualification step. The computer may maintain
accounts associated with CID, including when cards, rewards,
rebates, incentives, gifts, and credit is provided and in what
amount and under what conditions. Central computer 30 preferably
downloads the details of reward, rebate, gift, or incentive dollar
value deals to individual stores. In addition, central computer 30
preferably uploads data from each store, including the numbers of
reward, rebate, gift, or dollar value deals generated, total credit
redeemed, and all information on each CID related account.
In one embodiment, central computer 30 uses the data in global
consumer purchase database 32 and the consumer address list
database 34 to identify consumers who meet qualification criteria
and to instruct on distributing cards to qualified consumers by
direct mail or other suitable delivery means. Alternatively
purchase control computer 20 can perform this function. For
example, the central computer system 30 may produce two output
files in support of a targeted mailing to qualified consumers. The
first file is an offer definition file which, for each offer code
number, contains the text description of the offer along with other
information. The second file is a mailing list file that contains
the name, address and other mailing information about each
recipient along with a list of the offer codes identifying offers
for transmission to the recipient. The offer codes in the mailing
list file correspond to offers defined in the offer definition
file. The offer definition file contains information required to
print or display an offer. It preferably includes the following
fields: field name, count of the number of records in the file,
data and time file was created. Records in this file contain data
indicating a unique number identifying the offer and the offer's
purchase conditions, preferably as follows:b 1=cents off UPC list,
2=% off UPC list, 3=cents off everything in a department, 4=% off
everything in a department, 5=any product in UPC list free, value
of the offer in pennies, date and time when the offer becomes
effective, date and time when the offer ends (MMDDYYhhmm), short
description of the offer, and UPC number to bar code on the dollar
value or offer.
The mailing list file contains data preferably indicating the name,
address, letter type and offers to be distributed to each consumer
or household. Its header record preferably contains data indicating
count of the number of records in this file, date and time this
file was created. Each subsequent record preferably contains data
indicating identifying name of this mailing, name of the letter
shop receiving file, name of the mail piece to be received by
consumer or household, primary card number consumer or household
uses for identification, recipient's title (Mrs., Mr., etc),
recipient's last name, recipient's first name, recipient's middle
initial, name suffix (Sr, Jr, etc), street name, secondary address
(apt #, etc), city, state, zip+4, postal carrier route code,
delivery point bar code, offer 1 (zero for no offer), offer 2 (zero
for no offer), . . . , offer N (zero for no offer), USPS ACS
keyline, total value of offers on this record. Central computer 30
may perform list cleaning on the consumer data in the global
consumer purchase history database 32, for example by performing
validation checks on consumer address data and email address
data.
In general, a promotional store card distribution mailing will be
directed to customers of multiple retail and/or grocery store
chains. The retail and/or grocery chains are identifiable from the
purchase transaction data stored within the global consumer
purchase history database 32 and the consumer distribution list can
be stored easily by individual retail or grocery stores. The
retailer or grocer then has the benefit of local storage of this
information to provide follow-up distributions or supplemental
promotional dollar value download notification to take advantage of
the initial distribution.
Once cards have been generated and consumers selected to receive
them via mail, other distribution materials may be merged with
cards, including descriptive text, photographic materials combined
into an attractive presentation format that highlights promoted the
sponsored programs. Card distribution may be by hand delivery, a
POS terminal, shipping to stores, or mailing to residence
addresses.
Purchase control computer 20 may receive consumer selection
criteria from central computer 30 and apply the selection criteria
to its CID database in order to determine customer accounts to
provide a credit reward, rebate, or incentive. Purchase control
computer 20 may notify a customer of these credits and also account
for redemptions when a customer's CID is detected at a POS terminal
in the store. A consumer may be notified at a POS terminal via a
display or printed message.
During a purchase transaction, a product purchase related award may
be identified by evaluating the value of a trigger flag field in
item record database 18. The value of that trigger field may
identify an item as being subject to a purchase incentive deal,
which deal is preferably defined in incentive database 26. When a
triggering item is encountered in the processing of a consumer's
order, the purchase control computer 20 retrieves the terms of the
discount deal and informs the consumer, such as via a visual
display, audible message, or printed coupon.
In addition, when a CID is identified in association with a
purchase transaction, preferably accounts database 22 is accessed
to determine credit or rebates associated with accounts for that
CID. During the purchase transaction, any dollar value currently
unconditionally available as credit associated with the CID or the
customer involved in the purchase transaction is then redeemed by
crediting the charges for the purchase transaction. In addition,
conditional credits or redemptions are compared against the
customer's current purchases to determine whether conditions are
met for additional credits. Conditional credit would exist for
previously provided purchase incentives, such as paper or paperless
product coupons. If after subtracting the price of any item
purchased from the dollar value associated with the store card,
credit still exists, the credit remains in the account, subject to
future redemption. The consumer's purchase transaction receipt
preferably identifies the credit or redemption.
FIG. 6 is a flowchart showing an example of processing steps for
accounting for sponsored program charges and reporting on the
effectiveness of those programs. These steps preferably are
performed by central computer 30. Central computer 30 consolidates
transaction from all stores for either a given program or all
programs for a given manufacturer. Central computer 30 debits the
manufacturer's account for the credits to consumer's that
participated in the manufacturer's sponsored program or programs.
Likewise, central computer 30 credits the accounts of each retailer
organization. In addition, central computer 30 determines certain
statistical values. These statistical values include the fraction
of cards initially distributed in each sponsored program that are
subsequently actually used, actually used as FSCs, and
relationships between the subsequent use rates and value of the
initial account balance, and demographics of the consumers
initially receiving the cards. Central computer 30 is then
generates reports based upon the statistical values that may be
shared or sold to various retailers and manufacturers. In addition,
the values in those reports may be used contractually to determine
a fee payable to the marketing organization operating central
computer 30.
FIG. 7 shows steps involved in store card activation performed in
either the individual or batch mode.
In step 8.00, the computer (central computer 30 or purchase control
computer 20) determines whether a card activation request is for a
single card or a plurality of cards. If a single card is to be
activated, an individual store card is activated and associated
with a credit value, as shown in block 8.02. The store card is
distributed to a consumer, as shown by block 8.04. The consumer may
optionally register their consumer profile data for association
with the store card CID data, as shown in block 8.06.
In step 8.00, if a plurality of cards are to be activated, a batch
of multiple store cards are activated and associated with a credit
value, as shown by block 8.10. The batch of store cards are
distributed to multiple consumers, as shown by block 8.10.
Distribution may be by mass mailing, at a POS terminal in a retail
store, at a service desk in the retail store, or via purchase of
the card at a location in a different store. Consumers that receive
a store card from a batch distribution may subsequently register
the card by providing their personal information for storage in
association with the CID of the card, as shown in step 8.12.
In step 8.14, items purchased by a consumer presenting a store card
are processed in a purchase transaction. The consumer's purchases
are stored along in association with the card's CID), and sponsored
programs debits and credits, as shown in block 8.16.
FIG. 8 shows details of a purchase transaction at a POS terminal
involving a CID.
In step 9.02, during a purchase transaction, a determination is
made whether a CID is associated with the transaction. For example,
the POS system may read a CID from a scanned card. If no CID is
identified, a consumer may be offered a card either by a sales
clerk or via an automated visual or audible communication.
If the POS terminal 12 detects a CID, the purchase transaction
proceeds with scanning of product items (step 9.04), crediting of
unconditional credits in accounts associated with the CID,
crediting of conditional purchase incentives for which conditions
are satisfied (step 9.06), determination of new incentives to which
the customer is to be offered and offering those purchase
incentives to the customer (step 9.08 and 9.10), and completing the
transaction via exchange of goods and currency and updating
computer database accounts (step 9.12).
Furthermore, a manufacturer can determine criteria to reward its
customers based upon the individual customer's purchase history.
The manufacturer sponsor proceed by defining criteria to use to
reward CID accounts and then transmitting that criteria to central
computer 30. Central computer 30 can then apply that criteria
against CID) records in global consumer purchase history database
32, generate reward data for CIDs that meet the criteria, and
transmit data to each retailer for CIDs associated with that
retailer indicating the manufacturer's reward or purchase incentive
to provide to the customer presenting that CID in a POS terminal
purchase transaction in the retailer's store.
An FSC-Script Program method of the present invention provides a
computer implemented method for accounting for a sponsor
organization's purchase of script cards from a retailer or
manufacturer at a discounted value relative the card's account
values. The retailers accrue script dollars (value) in general
ledgers as certificate purchases. The retailers record changes in
accounts when the Script Program cards are used in the retailers'
stores in purchase transactions and at expiration dates associated
with the Script Program offers. The consumers can subsequently use
the card in the retailers's frequent shopper discount and incentive
programs.
Obviously, numerous modifications and variations of the present
invention are possible in light of the above teachings.
Accordingly, the inventors do not intend to be limited by the
specific embodiments of the invention disclosure above.
* * * * *